Internal Service Rules and Regulations 2017

Internal Service Rules and Regulations 2017

Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 1

TABLE OF CONTENTS

CHAPTER I....................................................................................................4

PRELIMINARY.............................................................................................4

Title............................................................................................... ...................4

Commencement...............................................................................................4

Extent...............................................................................................................4

Amendment.....................................................................................................4

Definition........................................................................................................4

Interpretation of Rules....................................................................................5

CHAPTER II..................................................................................................6

EMPLOYMENT.............................................................................................6

Category of Employees ...................................................................................6

Contract Employees..........................................................................................6

Staffing Pattern.................................................................................................6

Employment Eligibility....................................................................................6

Recruitment......................................................................................................7

Probation Period...............................................................................................8

Foreign Worker Recruitment ………...............................................................8

Employment Agreements ................................................................................8

Working Hours ................................................................................................9

Overtime ..........................................................................................................9

Breaks ....................................................................................... .....................10

CHAPTER III ..............................................................................................11

OCCUPATIONAL SAFETY AND COMPENSATION ..........................11

Occupational Health and Safety ....................................................................11

Workers Compensation .................................................................................12

CHAPTER IV ..............................................................................................14

CODE OF CONDUCT AND DISCIPLINE ..............................................14

Code of Conduct ............................................................................................14

Disciplinary Committee .................................................................................14

Disciplinary Action……... ………….............................................................15

Serious Misconduct………………. ...............................................................15

Grievance Procedure .....................................................................................16

CHAPTER V ................................................................................................17

REGULATION ON DISCRIMINATION, SEXUAL

HARASSMENT AND PRIVATE TRADE ...............................................17



Discrimination Regulation .............................................................................17

Sexual Harassment Procedure .......................................................................17

Private Trade ............................................................................... ..................18

CHAPTER VI ..............................................................................................19

SALARY, DEDUCTIONS, AND BENEFITS ...........................................19

Salary ............................................................................................ .................19

Deduction of TDS ..........................................................................................19

Deduction of Health Contribution .................................................................19

Annual Increment ..........................................................................................19

Provident Fund ............................................................................ ..................20

Mobile Phone Allowance ..............................................................................21

Construction Site Allowance .........................................................................21

Site Mess Allowance .....................................................................................21

Safety Dress and Shoes .................................................................................22

Use of Company Vehicle ...............................................................................22

CHAPTER VII .............................................................................................23

LEAVE AND PUBLIC HOLIDAYS .........................................................23

Casual Leave ............................................................................... ..................23

Earned Leave .................................................................................................23

Maternity Leave .............................................................................................24

Paternity Leave ..............................................................................................25

Bereavement Leave .......................................................................................25

Medical Leave ...............................................................................................25

Study Leave ...................................................................................................26

Power to Refuse or Revoke Leave ................................................................27

Public Holidays .............................................................................................27

CHAPTER VIII ...........................................................................................28

PERFORMANCE EVALUATION AND TRAINING ............................28

Performance Evaluation ................................................................................28

Training .................................................................................... .....................28

CHAPTER IX ..............................................................................................30

TRAVEL AND TRANSFER ......................................................................30

In-Country Travel ..........................................................................................30

Travel outside the Country ............................................................................30

Transfer ..........................................................................................................30

CHAPTER X ................................................................................................32



RETIREMENT, RESIGNATION AND TERMINATION .....................32

Retirement .....................................................................................................32

Resignation ....................................................................................................32

Retrenchment Notice .....................................................................................32

Termination ..........................................................................................32

Handing and Taking ......................................................................................32

Gratuity ..........................................................................................................33

Provident Fund Benefits ................................................................................33

Death of an Employee ...................................................................................33

Physical Impairment of an Employee ............................................................34

Annual Increment at Retirement ...................................................................34

CHAPTER XI ..............................................................................................35

STAFF WELFARE SCHEME ...................................................................35

Welfare Scheme .............................................................................................35

Welfare Scheme Deduction ...........................................................................35

Welfare Scheme Benefits ..............................................................................35

ANNEXURE 1: Performance Evaluation ....................................................36

ANNEXURE 2: Employment Agreement (Regular Employee) ..................37

ANNEXURE 3: Employee Agreement (Contract Employee)……………...38



CHAPTER I: PRELIMINARY

Title

1. This Service Rules and Regulations including all the annexure shall be

called the Internal Service Rules and Regulations.

Commencement

2. The Internal Service Rules and Regulation shall come into effect from the

time of endorsement by the Chief Labour Administrator.

3. The Chief Executive Officer and three representatives of the employees

shall sign the Internal Service Rules and Regulations.

4. The Internal Service Rules and Regulations shall supersede all office

orders, management decisions, and all such existing rules and

regulations.

Extent

5. The Internal Service Rules and Regulations shall be binding and

applicable to all the employees of the company unless specified

otherwise in specific sections.

Amendment

6. The Board of Directors in consultation with three representatives of the

employees shall amend the Internal Service Rules and Regulations as

and when necessary. However, the amendment of Internal Service Rules

shall be submitted to Chief Labour Administrator, MoLHR for

verification.

Definition

7. In this document unless the context requires otherwise:

“Company” means the Vajra Builders Private Limited

“Board of Directors” means the institution of the Board of

Directors

‘Board Director” means the individual director of the Board of

Directors



“Board” means the Board of Directors as an institution.

“Advisory Board” means the institution of Advisory Board (AB)

“Chief Executive Officer” means the executive head of the company

“Employee” mean an employee of the company

“Salary’’ means the gross monthly pay of an employee of the

company

“Regular” means permanent employee

“Contract” means employee recruited for a specific period

‘’Immediate family member’’ means spouse, children and parents of

both employees and spouses

“Government” means the Royal Government of Bhutan.

“Grievance” means complaint by workers or an employer

“National Minimum Wage” means wage for unskilled workers set

by government

“Accident” means unintended or unforeseen mishap at workplace

“Gratuity” means benefit scheme without employees’ contributions

“Provident Fund” means benefit scheme with employees and

employers’ contributions

Interpretation of Rules

8. Any question relating to the interpretation of these rules shall be referred

to the Chief Executive Officer. The issues not covered by these rules

shall be dealt according to the Regulations on Working Condition 2009.



CHAPTER II: EMPLOYMENT

Category of Employees

9. The first category of employees shall be regular employees. They shall be

permanent employees eligible for all benefits provided by the company

and bound in entirety by the Internal Service Rules and Regulations.

10. The second category of employees shall be contract employees. They

shall be professionals, specialists and multi-skill construction workers

recruited for a specific period.

Contract Employees

11. A contract employee shall be recruited for a period ranging from one year

to three years, renewable at the end of each contract period.

12. A contract employee shall be eligible for benefits provided by the

company and bound by rules and regulations of the company unless

specified otherwise in any of the sections.

Staffing Pattern

13. The Board of Directors or the Chief Executive Officer, in consultation

with Advisory Board, shall determine the manpower requirement for the

company from time to time.

14. The Board of Directors or the Chief Executive Officer shall decide the

salary of the newly created positions in consultation with Advisory

Board of the company.

Employment Eligibility

15. An applicant for a vacant position in the company must show the

documentary evidence that:

a. He/she is a Bhutanese citizen unless foreign national

requirement specified.

b. He/she meets all formal qualification and experience

requirements specified

c. He/she meets all health and fitness requirements specified



d. He/she is eighteen years and above

16. An applicant shall not be eligible for employment if:

a. He/she has been convicted of a criminal offence

b. He/she had his/her employment terminated from other

public/private organization

c. He/she has been compulsorily retired from other public/private

organization

d. He/she has been adjudged by a competent medical authority as

mentally unsound

e. He/she has not attained the age of 18 years at the time of

employment.

Recruitment

17. The Chief Executive Officer in consultation Advisory Board shall

determine the following for every new position:

a. Employment category

b. Salary

c. A job description of the position

d. Formal documents required

e. Academic qualifications required

f. Relevant experiences required

18. The Chief Executive Officer shall decide the manner in which

recruitments shall be carried out. Vacancies may be announced through

mainstream media, social media, or through word of mouth.

19. A new employee shall be recruited directly by the Chief Executive

Officer or through a formal competitive selection process depending on

the nature of the position.

20. Recruitment through a formal competitive selection process shall follow a

standard procedure of announcing the vacancies, receiving applications,

short-listing, and selection interview.



21. A panel consisting of the Chief Executive Officer, General Manager and

the respective Head of Division shall carry out the selection interview.

22. The Chief Executive Officer or General Manager or Chief HRO shall

thoroughly brief the applicant on his/her position and responsibilities,

salary and incentives, initial place of posting and possible future places

of posting before the recruitment is formalized.

Probation Period

23. An employee, whether regular or contract, shall serve a probation period

of six months. He/she shall be regularized or appointed for a full term

only upon the satisfactory completion of the probation. The probation

period can be shortened if his/her immediate supervisor recommends on

finding him/her performing extremely well.

24. The company shall discontinue the employment of an employee on

probation with a seven-day notice if his/her performance is found poor or

unsatisfactory.

25. An employee under probation period may terminate a contract of

employment with the company by giving seven-day notice.

26. The probation period shall not be considered as part of active service and

the employees on probation shall not receive benefits given to other

regular employees unless specified otherwise.

Foreign Worker Recruitment

27. The recruitment of foreign workers shall be carried out in line with the

provisions of the Foreign Workers Recruitment Agents Regulation 2009.

Employment Agreement

28. An employment agreement shall be signed between the company and an

employee at the time of recruitment. The agreement shall include all

details including the category of the employee.



29. The agreement shall also include the nomination of an immediate family

member to be contacted during emergency and to receive benefits in the

event of the death of an employee.

30. The employment agreement between the company and a contract

employee shall include the duration of employment.

31. One copy of the employment agreement shall be given to an employee

and one copy retained with the company.

32. The company shall provide a written notice of thirty days to an employee

if the company decides to terminate the employment agreement for any

reason. The length of notice period shall be same for the employer and

the employees.

Working Hours

33. The standard working days shall be from Monday to Saturday and the

standard timing shall be from 9:00 am to 5:00 pm.

34. The standard working hours shall be eight hours in a day and forty-eight

hours in a week.

Overtime

35. The company shall pay an employee employed below supervisory level,

overtime of a minimum of the employee’s normal rate of pay when

employee is required to work outside of the normal working hours.

36. Overtime works shall not exceed two hours in a day and twelve hours in a

week. All overtime works shall be voluntary and shall not be forced on

an employee.

37. If an employee below supervisory level is required to perform overtime

work between the hours of 10:00 pm and 8:00 am in the following

morning besides his/her normal day shift, the employer shall pay an

additional 50% of the normal rate of pay for the number of overtime

hours worked.



38. A pregnant employee shall not be required to work between the hours of

10:00 pm and 8:00am in the following:

a. 140 days before she is due to give birth and 56 days after she has

given birth to the child; or

b. at any other time if the employee produces a medical certificate

showing that such work would endanger the child or the mother.

39. Overtime shall be covered and accounted for in the annual increment of

salary.

Breaks

40. An employee shall be entitled to a rest break of ten minutes after two

hours from the beginning of each day’s work and a meal break of thirty

minutes after four hours of work. The breaks shall not be included in the

working hours.

41. The employees in a group, with the agreement of the company, may

forego the rest breaks and add to the meal break or forego altogether and

finish the day’s work earlier.

42. The duration of the breaks shall be negotiated between the company and

the employees. However, the total duration of breaks shall not be less

than thirty minutes in an eight-hour working period.

43. An employee shall have a rest period of twelve continuous hours in a

twenty-four hour period and a rest period of twenty-four continuous

hours in a one-week period.



CHAPTER III: OCCUPATIONAL SAFETY AND COMPENSATION

Occupational Health and Safety

44. The company shall develop and implement an Occupational Health and

Safety Programme (OHSP) according to the General Rules and

Regulations on Occupational Health and Safety in Construction,

Manufacturing, Mining, and Other Service Industries 2006.

45. The OHSP shall identify risks and hazards at the construction sites and

outline the procedures for preventing, eliminating, and minimizing those

risks and hazards.

46. The company shall train all the employees in the OHSP and conduct

rehearsals and refresher trainings on a regular basis.

47. The employees at each construction site shall elect one employee to look

after the OHSP and to represent the employees in the health and safety

matters.

48. Any employee observing an unsafe element at workplaces shall report to

the site representatives or to the management immediately. The company

shall attend to any unsafe element without delay.

49. The Chief HRO in co-ordination with OHS Committee shall inspect the

health and safety at the construction sites on a regular basis. The

inspection report along with the reports by the site representatives shall

be submitted to the Department of Labour.

50. The company shall brief the employees on the provisions of the General

Rules and Regulations on Occupational Health and Safety in

Construction, Manufacturing, Mining, and Other Service Industries

2006 and make a copy of the rules available to them.

51. An employee shall, at all times, adhere to the health and safety standards

of the OSHP and not endanger the lives of other employees and any

other people present at the workplaces.



52. An employee shall refuse to work if the working environment presents an

imminent and serious danger to his/her life or health. He/she shall

immediately notify the management.

53. The company shall not withhold the salary of an employee refusing to

work due to health and safety reasons provided he/she informs the

management and stays at the workplace.

54. The company shall provide an employee with all required personal

protective equipments free of cost and train him on the proper use of

those equipments.

55. The company shall immediately notify the Chief Labour Administrator,

MoLHR of an accident or an incident at work place.

Workers Compensation

56. The company shall insure all the employees with an authorized insurance

company and implement a compensation system in line with the

provisions of the Workers Compensation Regulation 2009.

57. The company shall pay the premiums on time and shall not deduct from

the salaries of the employees. In the event of the policy lapse due to non-

payment of premiums, the company shall pay the compensations liable

under the Workers Compensation Regulation 2009.

58. The company shall immediately notify the Department of Labour of any

serious accident that claims life or causes serious bodily injury. In the

event of death, the company shall report to the Royal Bhutan Police.

59. The company shall be responsible in processing the claims from the

insurance company and compensating the employees for injury or death

as per the Workers Compensation Regulation 2009 within fourteen days

from the date of receiving the report.



60. If an employee dies through accident during the work of the company, the

company, in addition to the compensations receivable from the insurance

company, shall pay a death benefit of:

a. Employee serving up to one year :Nu.10000/-

b. Employee serving up to two years :Nu.20000/-

c. Employee serving up to three years :Nu.30000/-

d. Employee serving more than three years :Nu.100000/-



CHAPTER IV: CODE OF CONDUCT AND DISCIPLINE

Code of Conduct

61. An employee of the company shall at all times observe the following

code of conduct:

a. Exhibit a high standard of integrity, honesty and loyalty in

his/her service to the company.

b. Maintain professional excellence and uphold transparency and

accountability.

c. Not engage in any activity that directly or indirectly conflict with

the interest of the company.

d. Not receive anything that shall be construed as bribes from any

person or give anything that shall be construed as bribes to any

person in works related to the company.

e. Not engage in activities that shall be construed as proselytisation

or associate with any political party in the name of the company.

f. Not do anything that may tarnish the image and reputation of the

company during or after working hours or in the work place or

outside the work place.

g. Shall observe the rules and regulations of the company and not

misuse the facilities of the company.

Disciplinary Committee

62. The disciplinary committee shall consist of the Chief Executive Officer,

Director, General Manager, Chief HRO and one of the three

representatives of the employees signing the Internal Service Rules and

Regulations.

63. The disciplinary committee shall decide all matters related to discipline

and misconduct of the employees in the company.

64. An employee shall be given a reasonable opportunity to defend

himself/herself against any allegation before a disciplinary action is

taken.



Disciplinary Action

65. Disciplinary action shall be taken against any employee for:

a. Coming late to work without any satisfactory reasons or without

permission from the supervisor/manager repeatedly.

b. Failure to come to work without any satisfactory reason or

without permission from the supervisor/manager for several

times.

c. Coming to work under the influence of alcohol or drugs.

d. Indulging in any violence during or after the working hours or

inside the workplace or outside the workplace.

66. The category of disciplinary actions shall be as follows:

a. The first category of written warning.

b. The second category of suspension from work for a period of up

to one month without salary.

c. The third category of termination.

67. The three disciplinary actions listed in section 63 shall be taken stepwise

for minor misconduct. However, in the case of a serious misconduct, the

third category disciplinary action shall be taken directly.

Serious Misconduct

68. The following behaviour or actions, but not limited to, shall be treated as

serious misconduct:

a. Providing false personal information or fake documents during

recruitment.

b. Being involved in any form of insubordination or disobedience

to any authorized senior employees.

c. Accepting or giving bribes when undertaking works for the

company or in anything related to the company.

d. Being involved in theft, vandalism, and fraud or misusing of

company’s revenue/property.

e. Being convicted for any criminal offence in a court of law both

inside and outside the country.



f. Abusing and assaulting any employee of the company or any

other people related or unrelated to the company’s works.

g. Discriminating another employee or any other person related to

the company.

Grievance Procedure

69. The Internal Grievance Procedure shall be prepared in consultation with

the employees and shall be reviewed periodically. The procedure shall be

written in simple language and presented in easy format.

70. The employer shall not retaliate against the complainant. Both the

employer and the employee lodging a complaint shall take every effort in

resolving the complaint within the stipulated time and within the

company without having to notify to the Chief Labour Administrator.

71. Employee who lodges the complaint shall be subject to disciplinary

provisions of the Internal Service Rule.

72. Detailed written complaint shall be received by the designated officer

within two working days and commence an investigation within five

working days. The complaint shall be dealt with within ten working days

from the commencement of the investigation.

73. If a grievance remains unresolved following an attempt to settle it by

applying the workplace grievance procedures at a workplace, the party or

the parties who initiated the grievance shall notify the Chief Labour

Administrator that a labour dispute exists.



CHAPTER V: REGULATION ON DISCRIMINATION, SEXUAL

HARASSMENT AND PRIVATE TRADE

Discrimination Regulation

74. The company shall respect and protect an individual employee’s gender,

marital status, ethnicity, region, language, nationality, caste, creed, and

religion.

75. An employee shall not discriminate another employee based on sex,

marital status, ethnicity, region, nationality, caste, creed, and religion.

76. Discrimination of any form shall be considered a serious misconduct

under this internal service rules and regulations and any employee guilty

of discrimination shall be dealt accordingly.

Sexual Harassment Procedure

77. Sexual harassment shall mean making an unwelcome sexual advance or

unwelcome request for sexual favour to other person and engaging in

any other unwelcome conduct of sexual nature in relation to the other

person.

78. The conduct of sexual nature shall include: making any oral or written

remark or statement with sexual connotation to a person or about a

person in his/her presence; and making gesture, action or comment of

sexual nature in a person's presence. However, the conduct is not sexual

harassment if it is welcome.

79. The victim shall complain in writing identifying the alleged harasser

describing the incident including places, times and dates and bring it to

the attention of the person designated in the procedure.

80. The designated officer shall acknowledge the complaint within two

working days and commence an investigation within five working days.

The outcome of the investigation shall be communicated to the victim

within ten working days from the commencement of investigation.



81. The victim may lodge a complaint with the Chief Labour Administrator,

Ministry of Labour and Human Resources if he/she is not satisfied with

the outcome of the internal complaint procedure.

82. A person who contravenes above sections shall be guilty of an offence

which shall be a petty misdemeanor. The court may impose fine at the

rate of daily minimum wage rate to a maximum of 3000 days in

accordance to the severity of the offence.

83. The employer shall be legally liable if he/she has knowingly ignored or

failed to take action on a sexual harassment case. However, employer

shall not be liable to the victim if he/she had prepared and implemented

sexual harassment policy and have clear internal procedures for handling

sexual harassment complaints.

84. If a victim is dissatisfied with the outcome of the Internal Complaint

Procedure or who chooses to by-pass that procedure may lodge a sexual

harassment complaint with Chief Labour Administrator.

Private Trade

85. An employee shall not engage in any private trade that conflicts with the

interest of the company. He/she shall declare the business or trade of

his/her spouse and other immediate family member.

86. An employee shall not purchase/procure goods and services for the

company from his/her spouse or other immediate family members

without the consent of the Chief Executive Officer.

87. An employee shall not use the company’s equipment and other facilities

for his/her private business/trade. He/she shall also not use office time

for private works.



CHAPTER VI: SALARY, DEDUCTIONS AND BENEFITS

Salary

88. The Chief Executive Officer in consultation with Advisory Board shall

fix the salaries of the employees at the time of recruitment. No salary

shall be below the National Minimum Wage.

89. The salary shall be payable at the end of every month.

90. An employee shall be entitled to two month’s salary advance at times of

emergency in one financial year. The site office shall have the authority

to sanction one month’s salary advance. The amount exceeding one

month’s salary shall be forwarded to the Head Office.

91. The advances availed by an employee shall be deducted from his/her

salaries within six months from the date of availing the advances. The

total amount of deduction shall not reduce wage payment less than 50%

of the total wage. He/she shall not be entitled to another salary advance

if the advances of the previous year have not been liquidated.

92. An employee on a probation period shall not be entitled to any salary

advance. He/she shall be eligible for salary advance immediately after

he/she is regularized or appointed for a full-term.

Deduction of TDS

93. The company shall deduct TDS (Tax Deducted at Source) from the

salaries of the employees as per the taxation rules and regulations and

deposit with the Regional Revenue & Customs Office.

Deduction of Health Contribution

94. The company shall deduct 1% from the salaries of the employees as the

health contribution to the government and deposit with the government.

Annual Increment



95. An employee shall receive an annual performance increment of

maximum ngultrum two thousands if his annual performance assessment

is satisfactory.

96. The annual performance increment shall be given upon completion of a

minimum of 12 months of active service for both regular and contract

employees.

97. An employee on a probation period and on a yearlong study/medical

leave shall not be entitled to an annual performance increment.

Provident Fund

98. 10% of the basic salary for the employees with university degree and 5%

of the salary for other employees shall be deducted as provident fund.

The company shall make equal amount of contributions to the

employees’ provident fund.

99. An employee on probation shall not be eligible for provident fund

scheme. He/she shall be eligible for the provident fund scheme

immediately after he/she is regularized or appointed for a full-term.

100. The company shall maintain a separate provident fund account with an

authorized financial institution, which shall maintain an individual

provident fund account for each employee.

101. An employee contributing to the provident fund for a minimum of five

years shall be entitled to the full amount of the provident fund including

interests earned on severance of employment other than for termination

for serious misconduct.

102. An employee contributing to the provident fund for less than five years

shall be entitled to the portion of his/her contributions and the interest

earned from the contribution on severance of employment.



103. An employee terminated for serious misconduct shall be entitled to the

portion of the provident fund contributed by him/her and the interests

earned from there

104. The portion of the provident fund contributed by the company and the

interest earned shall be given back to the company on severance of

employment of the employees contributing to the provident fund for less

than five years and of the employees terminated for serious misconduct.

105. In the event of the death of an employee his/her immediate family

nominated in the employment agreement shall receive the provident fund

due to him/her.

Mobile Phone Allowance

106. The mobile phone voucher allowances shall be given to the following

employees as follows:

a. Base In-charge :Nu.1000 per month

b. Supervisors :Nu.500 per month

c. Drivers/Operators :Nu.200 per month

d. Other staff :Nu.100 per month

107. The employees eligible for the mobile phone allowance listed in the

section 101 shall include even those employees on probation.

108. The Chief Executive Officer shall revise the mobile phone voucher

allowances from time to time depending on the need and in

consultation with Advisory Board.

Road Construction Site Allowance

109. An employee working at a road construction site shall be entitled to a

site allowance of ngultrum two thousands per month.

110. The employees working in the road construction sites eligible for site

allowances shall include even those employees on probation.

Site Mess Allowance



111. All construction sites shall have common mess for all staff, provided

free of cost by the Company.

Safety Dress and Shoes

112. All employees shall be provided with a pair of safety shoes, a set of

uniform, safety helmet, reflector jacket and T-shirt in a year.

113. The eligibility for safety dress and shoes shall include even those

employees on probation periods.

114. The technicians, masons, and others carrying out vocational works shall

be provided with a pair of gumboots in addition to safety shoes and

uniform.

Use of Company Vehicle

115. An employee shall be allowed to use company vehicles with the

approval of the Chief Executive Officer or any other authorized officials

for personal works at times of emergency. However, he/she shall bear

the cost of the fuel.



CHAPTER VII: LEAVE AND PUBLIC HOLIDAYS

Casual Leave

116. A casual leave of ten days shall be granted to an employee in one

calendar year. Sundays and public holidays falling in between the casual

leave days shall not be counted as part of the leave days.

117. A casual leave shall not exceed five days at one time and it shall not be

added to any other leave to extend the duration of leave availed by an

employee.

118. The unused casual leave shall not be encashed but added to the

following year’s casual leave. The maximum casual leave that can be

accumulated by an employee is three years and extra days shall lapse.

119. An employee undergoing a long term training/study or on a probation

period shall not be entitled to any casual leave.

Earned Leave

120. An earned leave of 2.5 days per month or 30 days per year shall be

granted to an employee. However, an employee on a probation period

shall not be eligible for any earned leave.

121. Sundays and public holidays falling in between the earned leave days

shall not be counted as part of the leave days.

122. An earned leave shall be availed for a part of the working day.

123. The unused earned leave, in part or full, shall be added to the following

year’s earned leave. The maximum earned leave that can be accumulated

by an employee is three years and extra days shall lapse.

124. The earned leave shall not be granted for a period spanning for more

than thirty days with weekends and other public holidays in between at

one time. The next earned leave shall be granted only after thirty days.



125. In case of disagreement between the management and an employee

regarding the dates for taking earned leave, the management shall have

the right to decide on the dates but with a written notice of fourteen days

in advance.

126. The salary for the days taken as earned leave shall be paid in advance if

an employee going on leave applies for advance payment. However, the

advance payment shall not be considered a part of the annual salary

advance entitled to him/her.

127. An earned leave, accumulated to a minimum of thirty days, shall be

encashable at the rate of the employee’s basic salary before taxes are

deducted.

128. An employee resigning from the company shall be entitled to encash

his/her entire earned leave.

Maternity Leave

129. A maternity leave of three months shall be granted to a female employee

giving birth to a child. She shall have the right to decide the commencing

date with proper notification in advance.

130. In the case of miscarriage, the maternity leave shall be granted for a

period of four weeks or the number of days advised for rest by the

doctor.

131. The maternity leave shall include Sundays and public holidays falling in

between the leave days.

132. An employee on a maternity leave shall be granted an earned leave in

continuation to the maternity leave if she applies. She shall also be

entitled to take an unpaid leave in continuation to her maternity leave but

with the agreement of the management.

133. An employee returning from a maternity leave shall be given the same

position or a similar position with no change in the salary.



134. A maximum of three periods of maternity leave shall be granted to a

female employee during her service with the company.

Paternity Leave

135. A paternity leave of ten days including Sundays and public holidays

shall be granted to a male employee on the delivery of his child starting

from the day of delivery.

136. An employee on a paternity leave shall be granted an earned leave in

continuation to the paternity leave if he applies. He shall also be granted

an unpaid leave with the agreement of the management.

137. A maximum of three periods of paternity leave shall be granted to a

male employee during their service with the company.

Bereavement Leave

138. A bereavement leave of 21 days shall be granted to an employee at the

time of the death of an immediate family member.

139. The bereavement leave shall include Sundays and public holidays

falling in between the leave days.

140. The employees may avail an earned leave of not more than thirty days in

continuation to the bereavement leave if he/she so desires.

Medical Leave

141. A medical leave of five days shall be granted to the employees in a year.

The medical leave shall not include Sundays and public holidays falling

in between the leave days.

142. An employee on a probation period shall not be eligible for any medical

leave. He/she shall be eligible for a medical leave immediately after

he/she is regularized or appointed for a full-term.



143. An employee shall submit medical prescriptions or certificates signed by

a competent medical authority on the request of the company. Failure to

produce such evidence shall result in the revocation of leave.

144. A medical leave shall be availed for a part of the working day.

145. The unused medical leave shall not be encashed but added to the

following year’s medical leave successively for five years. Any unused

medical leave, thereafter, shall lapse.

146. An employee may avail any number of earned leave due to him/her in

continuation to the medical leave. The Chief Executive Officer shall

decide case-by-case on any other issues related to medical leave.

Study Leave

147. A study leave of up to two years shall be granted to an employee having

served in the company for five years or more to pursue higher

study/training in a relevant field and in a recognized institute/university.

148. An employee seeking to pursue long-term training/study shall seek the

approval of the Chief Executive Officer before applying for

admission/scholarship.

149. An employee availing study leave for more than one month shall not

receive salary and any other benefit.

150. An employee shall not avail any other leave in continuation to the study

leave. The Chief Executive Officer shall decide on any extension of the

study leave if so required provided the leave availed has not exceeded

twenty-four months.

151. The position of an employee going on a study leave beyond six months

shall not be protected. Upon returning the Chief Executive Officer shall

decide a new position and a new place of posting in consultation with

Advisory Board.



Power to Refuse or Revoke Leave

152. The Chief Executive Officer shall have the discretionary power to refuse

any leave or revoke any leave already granted during any kind of

emergencies in the company. However, no person shall make use of,

cause or permit any form of forced or compulsory labour that is

extracted from any person under the menace of any penalty and for

which the person has not offered himself or herself voluntarily.

Public Holidays

153. An employee shall be entitled to the following 14 public holidays each

year, which is a leave with pay:

a. Traditional Day of Offering (one day)

b. Birth Anniversary of HM the King (21st February)

c. Losar (two days)

d. Zhabdrung Kuchoe (one day)

e. Lord Buddha's Parinirvana (one day)

f. First Sermon of Lord Buddha (one day)

g. Blessed Rainy Day (one day)

h. Thimphu Dromchoe (one day for Thimphu)/ Local Tshechu (one

day for respective locality)

i. Thimphu Tshechu (two days for Thimphu only)

j. Dasain (one day)

k. Dewali (one day)

l. Descending Day of Lord Buddha (one day)

m. National Day (17th December)

n. Birth Anniversary of Guru Rinpoche /Company Foundation

Day/Company Rimdro (one day)

154. An employer shall agree with his or her employees to substitute a public

holiday under section 148 above with another public holiday.

155. If an employee below supervisory level is required to perform overtime

work on public holidays, the employer shall pay an additional 50% of the

normal rate of pay for the number of overtime hours worked.



CHAPTER VIII: PERFORMANCE EVALUATION AND TRAINING

Performance Evaluation

156. The performance evaluation shall be carried out for all the employees

including those retiring at the end of a calendar year. For those on

probation, the evaluation shall be carried out at the end of the probation

period.

157. The performance evaluation shall decide if an employee should be given

his/her yearly increment, if an employee on probation should be

regularized or appointed on a full-term, and if an employee should be

granted training/study leave.

158. An employee shall fill a standard Performance Evaluation Form

provided by the company and his/her immediate supervisor shall

evaluate the form on the basis of his/her job responsibilities, work plan,

and general behaviour.

159. The evaluation shall take into account an employee’s extraordinary

achievements, initiatives taken, and recognition received from both

inside and outside the country and his/her misconduct and behavioral

lapses both inside and outside the company.

160. An employee shall receive a plus point in the annual performance

evaluation if he/she does not avail any leave.

Training

161. The Chief Executive Officer shall, in consultation with Advisory Board,

prepare a human resource development plan or a list of trainings and

higher studies required to develop the professional capacity of the

company.

162. The human resource development plan shall be submitted to the

agencies dealing with private sector development such as the Bhutan

Chamber of Commerce and Industry and the Ministry of Labour and

Human Resources.



163. The company shall encourage the employees to explore for training

opportunities in their relevant fields with both the government and non-

government agencies.

164. The supervisors and senior employees shall carry out short in-house

trainings or on-the-job trainings for the new and junior employees from

time to time to upgrade their knowledge and skills.

165. The Chief Executive Officer, on the advice of Advisory Board shall

nominate candidates for training/study offers received from outside the

company and granting approvals for training/study leaves.

166. An employee on probation and an employee whose performance

evaluation is marked unsatisfactory shall be eligible only for in-house

trainings or on-the-job trainings.

167. An employee availing a formal training of three months and above shall

sign a standard training bond with the company countersigned by a

guarantor that the company approves.

168. An employee on returning from a training/study shall submit copies of

the certificates and comprehensive training/study reports to the company

within fifteen days from the date of completion.

169. On successful completion of the training program, the employee shall

serve employer for the following specified duration:

a. at least one year after a short-term program and other long

term program besides masters or PhD;

b. at least three years after a masters or PhD program.

170. An employee not rejoining the company after completion of his/her

training/study shall reimburse double the expenses incurred for the

training/study whether those expenses have been borne by the company.



CHAPTER IX: TRAVEL AND TRANSFER

In-Country Travel

171. An employee shall travel for official work only after obtaining approval

from the Chief Executive Officer or other authorized officials.

172. An employee with university degree shall be entitled to refund of actual

meals and accommodation expenses on submission of proper bills or

DSA entitlement as per the position in the company and to mileage at the

government rate if personal cars are used.

173. The supervisors, operators, drivers, and technicians shall be paid a daily

subsistence allowance of ngultrum five hundred per night halt and refund

of actual travel expenses if company’s vehicle is not provided.

174. The daily subsistence allowance shall be paid in full only for ten days

for travels outside the place of posting. The Chief Executive Officer

shall decide the daily subsistence allowance for travels exceeding ten

days.

175. The daily subsistence allowance shall be paid in advance before the

travel. The accounts with retrospective travel expense claims if any shall

be settled with company within one week from the date of return.

176. An employee traveling to places without motor roads shall be entitled to

porter and pony if he/she has to take equipment or clothes and ration for

a longer duration.

Travel outside the Country

177. The Chief Executive Officer shall decide the daily subsistence

allowance for an employee traveling outside the country on official work

before the travel.

Transfer

178. An employee transferred from one place to another place shall be given

a preparatory time of one week.



179. The company shall post both the husband and wife, if they are working

for the company, in the same place if possible.

180. The company shall bear all the expenses related to travel including that

of the family members of the employees.



CHAPTER X: RETIREMENT, RESIGNATION AND TERMINATION

Retirement

181. An employee shall retire at the age of sixty. The retirement date shall be

last day of the month in which the employee reaches the age of sixty.

Resignation

182. An employee may voluntarily resign from the company with one

months’ of notice if he/she has fulfilled all conditions laid down in the

employment agreement and has no obligations to the company.

183. An employee standing as candidate for election to the local government

or the parliament shall resign from the company. He/she shall be entitled

to reemployment in the company if he /she wishes to join back and also

if company wishes to take back.

Retrenchment Notice

184. The company shall consult with workers' association or, if there is no

such association, the employees at the work place, advising of the

number of employees liked to be made redundant and the period over

which this may occur.

185. The company shall give one month and additional notice of seven days

for every year of continuous employment by the employee for that

employer up to a maximum of 42 days.

186. The company shall notify the Chief Labour Administrator of the

proposal, including the number and categories of employees involved

and the reasons for their termination.

Termination

187. An employee shall be compulsorily retired or terminated from service

as prescribed in sections 62, 63, 64 and 65 of the Internal Service Rules

and Regulations.

Handing Taking



188. An employee leaving the company shall hand over the work

status/details, equipment, and any other thing issued to him/her by the

company to an authorized employee.

189. The company shall deduct the equivalent amount for any item missing

from the employee’s benefits.

Gratuity

190. An employee serving for a minimum of ten years shall be entitled to a

gratuity on the severance of his/her employment. His/her gratuity shall

be calculated multiplying his/her last month’s salary by the number of

years served.

191. An employee’s probation period shall be included in his/her service

duration for the calculation of his/her gratuity. However, counting from

the first day to the last day in the company, only full years shall be

considered and fraction of a year shall be ignored.

192. The gratuity shall be paid within fifteen working days from the date of

leaving the company.

193. An employee serving for less than ten full years from the date of joining

the company and the employees terminated for a serious misconduct

shall not be eligible for gratuity.

194. In the event of the death of an employee the gratuity shall be paid to

his/her immediate family member nominated in the employment

agreement.

Provident Fund Benefits

195. An employee leaving the company for any reason shall receive

provident fund benefits as prescribed in sections 93, 94, 95, 96, 97, 98,

99 and 100 of the Internal Service Rules and Regulations.

Death of an Employee



196. In the event of the death of an employee, the immediate family member

nominated in the employment agreement shall receive all the benefits

permissible under the Internal Service Rules and Regulations.

Physical Impairment of an Employee

197. An employee who is rendered handicapped or partially handicapped in

the event of accident during official duty shall be compensated as per the

Workers' Compensation Regulation if he/she chooses to resign from the

Company. He/she, however, shall be encouraged and given opportunity

to serve the company in the capacity of the job he/she is able to perform.

Annual Increment at Retirement

198. The company shall grant an annual increment if his/her annual

increment is due at the date of retirement or the following day and if

his/her performance is satisfactory.

199. The new salary amount derived with the inclusion of the last annual

increment shall be used for the calculations of all the retirement benefits

of the employee.



CHAPTER XI: STAFF WELFARE SCHEME

Welfare Scheme

200. The company shall operate a welfare scheme with a separate bank

account for the benefit of all the employees including those on probation.

Welfare Deduction

201. A sum of ngultrum two hundred shall be deducted from the salary of an

employee and deposited in the Staff Welfare Scheme account every

month.

Welfare Scheme Benefits

202. The death benefits for the death of an employee and the death of his/her

family members from the Staff Welfare Scheme Fund are as follows:

a. Death of employee :Nu.25000/-

b. Death of spouse :Nu.20000/-

c. Death of employee’s parent :Nu.10000/-

d. Death of spouse’s parent :Nu.10000/-

e. Death of children :Nu.15000/-

203. An employee leaving the company for any reason shall be eligible for

total refund of his/her contribution provided he/she has not made any

claim before.

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Internal Service Rules and Regulations 2017

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